Oscar Health slips after earnings miss

Oscar Health tumbled as much as 6% in premarket trading after it reported earnings that missed Wall Street estimates even after giving investors a look under the hood last month.

The company posted a diluted loss per share of $0.89, more than the $0.81 loss per share analysts polled by FactSet were expecting. The company attributed that to higher-than-expected medical costs.

Oscar also reported $2.81 billion in revenue, less than the $2.91 billion the Street was penciling in.

The company released preliminary earnings results on July 22 in which it flipped its forecast from expecting operating earnings of $250 million to an operating loss of $250 million. The revision came after it was hit with significantly higher costs of care for members on government-sponsored insurance.

Oscar is one of the last of its peers in the medical insurance business to report earnings. Companies that rely more on government-sponsored programs, like Centene and Elevance Health, have reported results that disappointed Wall Street while those that focus on private plans, like Cigna, have fared better.

Oscar, which has attracted retail attention in recent months, is up about 2% for the year as of market close on Tuesday.